In 1819 the New Hampshire Legislature attempted to alter the charter of Dartmouth College, which was granted by George III in 1769. New Hampshire was attempting to turn Darmouth College from a private institution into a public body, gaining control of its board of trustees. The Supreme Court ruled that the legislature could not interfere in a contract between private parties, even though the United States had since gained independence from Britain and its monarchy. This ruling set the precedence that states had limited powers when intervening in business contracts between private individuals.
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